It’s another busy First Friday Q&A. You set us straight on what we got wrong over the past month and Mark rolls out his US National Energy Policy.
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Jeremy Bebiak, PwC
Enjoy the show, long-time listener.
Quick question: you mentioned briefly (show 48 I believe?) that you and Mark had – or will have – the opportunity to sit with NOV and learn about their Closed Loop drilling technology. Was wondering if I could pick your brain about what you learned (unless that is content dedicated to an upcoming episode). I am also curious about this technology and would love to hear more.
Andrew Sheils, Merrill Lynch Commodities
Hey guys – thanks for diving into last week’s question in such depth.
As for my statement regarding the Contango market – we were looking at Contango theory in different contexts. You absolutely correct regarding the trend of futures prices over time, converging DOWNWARD towards the expected spot price. Whether in contango or backwardation the futures contract has to converge with the spot price, as we approach maturity (not accounting for arbitrage opportunities). However that doesn’t necessarily imply that the expected spot price (future), compared to the current spot price has to be lower. In that regard, we (traders/market participants) certainly use contango loosely and are typically referring to the upward sloping futures curve. In short, I still believe the price of crude will be going up, despite carrying/storage costs.
For example: Look at today’s spot (~$26.94) and today’s Mar’17 futures contract for (~38.84), and lets also say that the general consensus is that that the expected spot price of oil will be about $35 .
Fast forward to Feb/Mar’17 where the spot price is now $32. It has rising from $26.94 (today), but is still lower than the 2016 expected price (we said $35) , and also lower than the Mar’17 futures contract… someone trading physical crude (esp that can store spot oil, until they sell/trade for future delivery) can profit (or as I was saying, reduce operation losses if it costs them $30 to pull it out of the ground).
So, in short, we were actually in agreement that crude prices will go back up. I was just trying to paint a picture for why a lot of companies were able to stay afloat, much longer than expected.
Kevin, Chesapeake Energy
Currently working on a lot of data entry with daily reports from non-op/Joint Venture companies, so I get to listen to you guys religiously (on repeat most days) 4-6 hours of my 9-10 hour work day! Thanks for always keeping it interesting, and keeping me updated in weekly oil and gas news! You guys are really on to something here, and I am excited to see the continued progress in something that has so much potential, especially at a time like this in the industry.
Question: I am currently working on my MS in Energy Management and our professor assigned us a group project, due March 1st. Can either speak about the following:
Your group is the energy advisory council to the President of the United States. Using data, research, and a pragmatic, non-partisan approach to domestic and international energy resources, provide a comprehensive energy policy for the U.S.
Considering all of the current energy resources we have available, the sources and uses of these energy resources, supply and demand, and environmental impacts, what would you provide the President as a national energy policy?
Anwar Lara, SOFEC
Good morning Mark. I work for SOFEC, Inc and we use Turntables in our Buoys. The CALM buoy falls under the category of a Single Point Mooring (SPM) typically with a turntable positioned above the geostationary hull mounted on a roller bearing.
I was listening to your podcast #52 and you asked if we still use turntables. Perhaps this is a different turntable.
Nah Wenbin, Gaffney, Cline & Associates
Regular listener of the show. Enjoy the show very much and enjoy learning more about the industry from your experiences.
I just heard the latest episode where you were talking about the Gatwick oil field, where you mentioned that the field had “100 Billion Barrels Reserves”. I googled the field and this article mentioned that the size of the field was about 100-124 Billion Barrels of oil in place.
Since this is within my field of expertise, I just wanted to share and highlight the distinction between “Reserves”, which means economically recoverable volumes, and “hydrocarbons in place” which means volume of oil in the ground. The correct way to describe those volumes is about 100-124 Billion Barrels in place.
In addition, since the article mentions that “UKOG hopes that between 3-8% of the oil is recoverable, meaning nearly 10 billion barrels could possibly be produced.”
This means that the estimated ultimate recovery of the field is roughly 10 billion barrels of contingent resources. These volumes are only classified as reserves later in the development phase when the development is firmed up. (Development plan approved, shareholders approve). This means that calling these volumes reserves at this stage would be a mistake in the terminology.
Aaron Drucker, CB&I
I listened to the show last week and heard Mark mention CB&I (Chicago, Bridge & Iron) as a potential company that’s hiring. I’m a BDM for our LNG projects and am well aware of all of CB&I’s hiring practices, and I just wanted to comment that CB&I isn’t just a labor broker. We self-perform the EPC for major capital projects, including multi-billion dollar LNG and ethylene projects currently on the Gulf Coast. Mark mentioned CB&I as a way to jump to some of the IOCs, but in reality the major projects in execution on the Gulf Coast are not IOCs, they’re companies like Freeport, Cheniere, Axiall, Sempra, etc. In that vein, I wanted to say the CB&I is a destination employer, there’s no need to jump. Our goal is to recruit, train, & retain skilled labor.
Anyway, I’ll get off my soapbox. You guys do a great job and I’m a big fan of the show. God bless.
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#053: Mark’s US National Energy Policy
Transcripts Courtesy Of
James: I’m James Hahn II.
Mark: And I’m Mark LaCour.
James: And you’re listening to the Oil and Gas This Week Podcast, Brought To You By Red Wing, Episode 53. Coming to you live from Tribe Rocket Inc’s new headquarters in the Oil Capital of the World, Houston, Texas, down here in the Museum District now. Mark LaCour, welcome to Episode 53.
Mark: Yeah. That’s really cool. Just to make sure our listeners understand, your old headquarters was also in Houston, Texas. You just moved around a bit.
James: It was also in Houston, Texas, but it was in the Galleria. Now, I’m pretty much downtown, which is great for a city boy like me. It’s less than two miles from George R Brown, The Petroleum Club, all these different places that you have to travel in from Sugarland.
Mark: Yeah. It’s a bit of a drive. I’m going to be a bit jealous next time we have an APIV where you get to have a five-minute commute, and I have a 40-minute commute to get there.
James: Yeah. If you’re new to the show and you don’t know this, Mark and I don’t record in the same room. A lot of people think we do, and I guess that’s a credit to my production skills, Mark.
Mark: Yeah. I think we only – what, twice, maybe, we’ve done it live in the same room.
James: Twice, possibly. I know the people like the UFC talk. We’ve got some UFC fans out there. There’s a big fight coming up here between the one Mr. Connor McGregor whose trash talk is just – I hate the word “savage”, because it’s being used too much on the internet, but people used to say “epic”, and now, they say “savage”.
Regardless, the guy’s a beast. He’s fighting Diaz. I know that you don’t watch the UFC, but you practice these mixed martial arts. What’s your take on these guys?
Mark: It’s funny. A lot of people want to have a conversation with me about what’s going on currently in MMA. They are shocked to find I don’t watch it at all. In fact, I pay no attention to it.
I’ve done it. I do it. I’ve done it for years, but I just don’t really watch it on TV. When you brought this to my attention, I checked out both these fighters. First thing, I agree. Connor is just an expert at trash talk. He is good. He’s got a great character. He’s a striker, right? Diaz is a ground guy. Diaz is a BJJ guy.
A lot of people don’t understand this. MMA is very strategic. It’s all about taking your opponent in a zone they’re not comfortable. In any fight – and this isn’t anything new; the Greeks figured this out a million years ago – there’s basically three stages.
There’s the standing stage where you can throw large, powerful punches and kicks. There’s the clinch where you’re still standing, but you can’t throw those powerful punches and kicks. There’s the ground game. Whatever you’re strong at, you want to bring your opponent there.
This is going to be a really, really good fight where Connor’s strategy is to keep Diaz standing up. He keeps Diaz in a zone that Diaz is not comfortable with. Diaz’s strategy is to be able to bring Connor to the ground, the place where Connor’s not comfortable with. We’ll see who’s better at executing that type of strategy.
James: Yeah. If you have any thoughts on this upcoming fight, go on to triberocket.com/tw53. Let’s get some trash talk going in the comments just to hear different people’s perspective from across the globe, because we’ll get into that.
I had a great dinner last night with Christina from Ecuador – just make the clarification right now, not China, Mark. Not China.
Mark: I don’t know why I thought he was Chinese. I got that one wrong. Really wrong.
James: Really wrong. But it made for a great story. We’ll get into that later. Right now, this is the March 2016 first Friday Q and A, and we have a lot of questions. Thank you to everyone for submitting. I’d say this is probably one of our most heavily attended first Friday Q and A’s, if you will.
Mark: You know what, James, I think is really cool? Look at the quality of these questions. We’re having some industry experts reach out to us – we don’t discount people that want just general knowledge about the Oil and Gas industry – this is some very deep, very hardcore industry questions. We love it. Thanks, everybody.
James: Yes. Definitely. We’re going to kick things off. We briefly mentioned this question on a previous episode. I don’t remember if it was a Q and A show or not. But it was about the NOV lunch that we attended. That was just – all my days are mixing together, because I just –
Mark: Two weeks ago.
James: Two weeks ago. I was at out there at the Capital Grill in Houston. Just talk about what we learned, and what were some takeaways that we can talk about publicly? Because obviously, we can’t go into detail about a lot of things, but what stood out to you the most at the NOV lunch?
Mark: This is a question from Jeremy. He wants to understand what we learned at the NLV lunch around closed-loop drilling. Unfortunately, Jeremy, we can’t tell you exactly what we learned.
But a couple of takeaways from that lunch that I thought were very powerful – number one, dig data and the ability to use big data in drilling is a paramount initiative inside of National Oilwell Varco. It’s such an initiative that even though NOV is laying off people, that big data team at NOV is growing.
That tells you a lot. It tells you that National Oilwell sees the business driver in big data in being able to mine that big data to help increase their efficiencies.
The other thing I thought was really cool is the fact that the head of that movement within NOV was allowed to speak publicly. Usually, companies like this don’t let anything that is that crucial to their business success – they don’t allow those guys to speak publicly, because they don’t want their competitors to learn about it. I thought that was also a bit of a different shift.
It was a great lunch. A lot of high-tech speak. Let me just say this much, Jeremy. National Oilwell is going down that road full bore, and I think the rest of the entries will be doing it as well.
James: Yeah. Shout-out to Theo at Map R as well for getting that lunch put together. I learned a lot. In a certain sense, I did feel a little bit like I was at my first day in the industry when I’m back at Drilling Info, when I was going “What are these guys talking about?” But some of the things in terms of data storage and what you’re able to do in moving around data with the different protocols that he’s running. The thing that really stood out to me is that he was a true evangelist.
Mark: Oh, yes. Yeah. He was brought into NOV to address his problem, and he’s doing it, but he’s on the – literally – not the cutting edge, but the bleeding edge of this in oil and gas.
James: Yeah. His pictures of his setup where he did this waste management for the first time were pretty classic.
Mark: Yeah. He’s basically had multiple servers set up in a high-performance computing environment under his desk. If we could somehow find that picture – if you’re a tech guy, and you see this, you’re going to laugh.
James: It was great. All right. Those are our takeaways from NOV. Let’s move over to Andrew Shield’s. Merrill Lynch commodities – we’ve heard from Andrew on Contango markets last month. He followed up with a deep dive. We’re going to put obviously all of these questions and statements and replies in the show notes. If you want to take a deep dive and get into Contango, feel free.
I guess the kernel of this that we’re going to talk about right now is the fact that Mark and Merrill Lynch are in agreement that current prices are going to go back up.
Mark: Yeah. Andrew, hats off to you, brother. This is some great information. You’ve actually educated me a lot just by our interactions. In fact, I’ll probably reach out to you outside the show, because I want to learn more.
But basically, what he’s saying that if you look at the spot price – and today’s spot price I think is 26-24 – and you look at the March futures contract, which is about 38-84, the general consensus is that the spot price is going to be about $35 in March. That’s a trend upwards.
That trend’s going to continue. I’m still sticking to my August 2016 of this year for $60 a barrel. But this is a good deep dive into how those markets work, what the people that invest and look to make a profit on oil as far as brokers of commodities – how they actually do the math.
Reenter this. You want to see how it’s done. This is a great explanation. He breaks it down in a way that you actually can understand it. Hats off, Andrew, for reaching back out to us and putting this in front of us.
James: For us – not that I’m uninitiated, but – that’s still learning, can you break down spot pricing futures and what that means?
Mark: A spot price is what you would pay right now. Literally, right this second. Because in another minute or two, that spot price is going to change. Trying to figure out what you think that spot price is going to be in the future is how you either make money, or unfortunately, how you lose money, if you’re a broker in this market.
There’s a lot of information, a lot of math, a lot of statistical analysis that is used to figure out what that spot price could be in the future. That spot price in the future is the future price. Make sense?
James: Yeah. That makes total sense. Thanks for that.
All right. We’re going to move on Kevin from Chesapeake Energy. He’s actually a student. We had to apologize to Kevin, because we weren’t going to be able to get his answer before his due date of his project. But he asked a really interesting question. Mark gave him a reply, but I wanted to unpack it on the show here. Let me just read his project, and then we’ll let Mark do his thing.
“Your group is the energy advisory council to the President of the United States.” Oh, my goodness. Who could that be? “Using data, research, and a pragmatic, nonpartisan approach to domestic and international energy resources, provide a comprehensive energy policy for the US considering all of the current energy resources we have available – the sources and uses of these energy resources, supply and demand, and environmental impacts.”
What would you provide the president as a national energy policy, Senator LaCour?
Mark: Kevin’s actually working on his Master’s in Energy Management. This is a class assignment for him, for actually his team. You reached out to us. Unfortunately, the timing wasn’t right. We couldn’t get it on the show. But I was happy to help Kevin.
Basically, the issue is this: if you look at offshore project in the Gulf of Mexico, the timeline from first oil to decommission may be 50 years. Some company has to mitigate risk on that project. Chevron, Exxon, whatever. But our political climate changes every four to eight years.
What happens is the oil and gas companies have to work in the risk of the political climate change, which increases the cost of that oil, which ultimately, the consumers paid for.
What we need is a national energy policy totally disconnected from the political regime. It needs to be something where that group is worried about what is right for the US citizens, not all the other stuff.
What I told Kevin is basically, you need to put together a team in that policy. A team should focus on things like the free market. It should promote the free market.
You would also need to build a board of energy experts to lead the US energy policy. This board must not have any political direction and cannot be controlled by congress. Same way the –
James: Federal Reserve?
Mark: Yeah. Same way with the Federal Reserve. Then the term reserve should be ten years. This way, the term that these people serve on this board overlaps multiple political regimes. Their charter should be to ensure reliable energy for the US people and the economy.
They need to be conductive to energy abundance for liability and affordability. Then they have stable and unbiased policies that support open, competitive markets. You need to lead discipline investments and new projects and new technologies, and you need to not focus on micromanaging or manipulating energy markets. All stuff that our current political regime does.
If we would have this type of energy policy and pace, you would be amazed at how cheap energy would be for the US. It would just be crazy. The energy companies would not have to build in the risk of political changes every time there’s an administration change.
That what I reached out and I told Kevin. What was so cool is that he replied back to me and said that literally they were just having discussions, and his team is getting ready to finalize stuff. They all had the same thoughts, but they’re trying to figure out how to put it in words. When he got my email, he goes “You were spot-on. This is what we came up with. We just didn’t know how to condense it down to a few bullet points.”
Kevin, I hope this helped. I’m really glad you reached out to me on this. This is a great question. Unfortunately, we didn’t get it in time to actually help you live, but I know that I helped you when I replied back to you. Anything else we can do for you, Kevin, and your team working on your Master’s in Energy Management, reach out, and we’ll be happy to do so.
James: Mark LaCour, 2016. All right. You said a lot there. What are maybe one or two points that you can unpack in terms of the gravity of the importance? It seems that the term would be really key.
Mark: Term and no political affiliation. A lot of people that listen to us probably think that the Republican right-wing party is very pro-oil. The truth is, no. They don’t do anything to hurt the oil and gas industry, but they don’t help it.
The left-wing Democrat party obviously does a lot of stuff to hurt the oil and gas industry. This has nothing to do with the mix between renewables and oil and gas. The market should figure that out. What is best for the environment? What is best for the country? What is best for the people?
Unfortunately, right now, James, you’re having politicians create rules and laws that aren’t looking at the best interest of American people.
James: Yeah. It’s market intervention at its best or worst. I could go down that road. Let’s not, though. Let’s move over to Anwar Lara.
“Good morning, Mark. I work for Sofec.”
Mark: That’s how I pronounce it.
“We use turn tables in our buoys. The calm buoy falls under the category of a single-point mooring, typically with a turntable positioned above the geostationary hole mounted on a roller bearing.”
This is inside baseball right here.
James: “I was listening to your podcast number 52. You asked if we still use turntables. Perhaps this is a different turntable. Have a great day.”
Mark: Anwar, thank you so much for sending this out to us. This is a different turntable than I was talking about, but what was so cool about this is I learned something I didn’t know. There’s a whole industry around these buoys so they can anchor everything from FPSOs to Super Tankers to make it safe.
What they do is in this buoy, they have a turntable that rotates so that when you attach the mooring line from the ship, it’s automatically lined up. It keeps the hole exactly in position. I didn’t even know this industry existed. Really cool stuff.
James: What does this mean? I have to ask. Just educate me a little bit here, because you said an acronym and Super Tankers.
Mark: Oh, FPSO. Damn it. Now, I can’t remember what FPSO stands for. Basically, it’s a ship that does everything. It goes in. It offloads the oil and gas cargo. It refines it or processes it, then it brings it to market.
James: Got it.
Mark: Look up FPSO and get the definition.
James: Okay. All right. What is the single point in mooring typically turn – all this stuff, just kind of unpack it.
Mark: Think about if you’re in a boat. It doesn’t have to be a Super Tanker. Just any boat. You go to tie up in the middle of the ocean. You may have a reason to keep that boat in position. You don’t want the wind or the waves to move you around, because you just tie up with a single rope to a buoy. A buoy is basically an anchor in the sea floor with some type of connection, usually chain, to a float on the ocean surface. You tie up to that float.
If you just tied up a boat to that buoy, when the wind or the waves change, you would rotate within a 360 degree circle around that buoy. Understand that?
James: I got that.
Mark: Now, imagine if you wanted that boat to stay still.
James: Yeah. That’s exactly what you want. I see those graphs all the time. Yeah. Okay.
Mark: I actually remember. FPSO is Floating Production Storage and – I think – Offloading is what it is. FPSOs were real big in Brazil. They’re actually starting to take off in the Gulf of Mexico.
James: Got it. Okay. Thanks for bearing with me. Also, shout-out to Jeremy at Mobile Data Tech who –
Mark: Well, before we go back there, let me finish with the whole term. I was actually talking about turntables on land and offshore. Turntables – literally the electric motors or diesel generators or whatever – drive to turn the drill step. It actually transfers the power to the drill step.
Then you had a conversation with somebody and said you don’t call them “turntables” anymore. What do they call them?
James: Well, Jeremy said “Is Mark having a bad day? They’re called rotary tables.”
Mark: Yeah. Jeremy, I’m not having a bad day. A million years ago, I used to do a lot of stuff on the rigs. They called them turntables. Somewhere in the last 20 years, they’ve changed their names. My question around all of this is I know top drives are getting big. Maybe Jeremy can answer this.
When you go out in the field, are the turntables or the round tables being displaced by top drives in a big way? I don’t know that answer to that question. I’d love to know.
James: Yeah. Hit us up on that in the show notes. Triberocket.com/tw53. Now, we have Nah Wenbin, Senior Consultant and Resevoir Engineer at Gaffney Cline and Associates. We’re going to go through a little bit of this, and then Mark’s going to be able to unpack a little bit more.
“Regular listeners of the show enjoy the show very much and enjoy learning more about the industry from your experience. I just heard the latest episode where you’re talking about the Gatwick Oil Field where you mentioned that the field had ‘100 billion barrels reserves’. I Googled the field, and this article below mentioned that the size of the field was about 100-124 billion barrels of oil in place.
“Since this is within my field of expertise, I just wanted to share and highlight the distinction between reserves, which means economically recoverable volumes, and hydrocarbons in place, which means volume of oil in the ground. The correct way to describe those volumes is about 100-124 billion barrels in place.”
Mark: Yes. Thanks for reaching out to us. I knew this, but I missed it when I was talking about this field. He’s absolutely right. There’s a difference between the amount of oil that’s in the ground and the amount that you can recover.
“Barrels under reserve” is actually a legal term. It’s basically how much oil do you know you can get out of the ground.
We’ve talked about this on past shows. The frack fields that Shell placed in the US aren’t new. That’s where the Rockefellers and the Standard Oil made their monies 100 years ago, because they had gushers. They would drill, oil would gush out of the ground, and they would capture it, and they would sell it.
When they quit having the gushers, the said “Oh, the fields are depleted.” What they didn’t know is they weren’t depleted. They had only removed 5% of the oil out of the ground.
Now, we come back in the same place with a combination of old technology, which is fracking, and a new technology, which is horizontal drilling. We’re able to go capture another 15%.
If you do the math, five and 15 is only 20%, which means 80% of oil is still in the ground. That 80% of oil that we can’t get out today is hydrocarbons in place. That 20% that we’ve gotten now would have been barrels in reserve if we would have left it in the ground.
You see how technology, as technology goes, you’re able to get more and more oil out of the ground? Which means that your barrels under reserve goes up. Does that make sense?
James: Yeah. It makes sense. Realistically, we’re talking about more like 20 million barrels of reserves, possibly.
Mark: Right. Because they can only right now get about 23 and 8% of that oil out of the ground. But as time goes on, myself and most experts in the industry believe that new technologies will be discovered that will allow us to tap more and more into the barrels in place, not just in this field, not just in Shell place in the US, but in the world.
That’s why we’re never running out of oil. We’re in a hydrocarbon-abundant world, and we will continue to be in a hydrocarbon-abundant world.
James: That’s exactly what I was thinking as you were speaking about that because of the fact that that just blew my mind when I did learn that back in my early days. The best analogy that was given to me was thinking of taking a paintbrush and dipping it into the paint, and you pull it out. You don’t get all of the paint. You only get whatever you can get on that brush.
To think about all of the headlines that always talk about “We’re running out of oil, we’re running out of oil” – we’ve barely scratched the surface of the oil that we have drilled.
Mark: Yeah. The other thing that people mistakenly think is they think that companies like Chevron and Exxon and Petrobus has went out and done geosurveys on the entire planet and discovered all the oil that they can get to. If you think about that from a business point of view, why would they do that? It’s a waste of money. They only go out to find reserves that they can tap into the next five or ten years.
The amount of reserves – barrels on reserve – in this world if you go out and do the research goes up every year, because the companies don’t go out there and find it all. They only find what they need in the next couple years.
James: Yeah. I think we’ve talked about that in shows in the past, but it’s always a great point to hit again, because again, you’re hitting this hydrocarbon-abundant world a lot. It’s just so much that we can’t even really wrap our heads around it if we tried to.
Let’s move over to Aaron Drucker at CB&I, because we’ve mentioned CB&I a couple times on this show and then also on the careers podcast. CB&I – to clarify, Chicago Bridge and Iron – we’ve got that going on. It was really interesting. Thank you very much, Aaron, for reaching out on this.
“I listened to the show last week and hear Mark mention CB&I as a potential company that’s hiring. I’m a BDM –” explain.
Mark: Business Development Manager.
James: There you go. ” – for our LNG projects.” We’ll skip that one.
Mark: Liquefied Natural Gas.
James: Yeah, exactly. “And I’m well aware of all CB&I is hiring practices. I just wanted to comment that CB&I isn’t just a labor broker. We self-reformed the EPC…”
Mark: Engineering Procurement Construction.
James: “…for Major Capital Projects, including multi-billion-dollar LNG and Ethaline projects currently on the Gulf Coast. Mark mentioned CB&I as a way to jump to some of the IOCs.”
Mark: I want to say Independent Operating Companies. No, that’s right. Yeah.
James: “…some of the IOCs. But in reality, the major projects in execution on the Gulf Coast are not IOCs. They’re companies like Freeport, Cheniere –” why don’t you finish that?
Mark: “… Axle and Sempra.”
James: Okay. “In that vein, I wanted to say that CB&I is a destination employer. There’s no need to jump. Our goal is to recruit, train, and retain skilled labor. Anyway, I’ll get off my soapbox. You guys do a great job. I’m a big fan of the show. God bless.”
Thank you, Aaron. What do you have to say for yourself, Mark?
Mark: Aaron, we like it when you’re on your soapbox. I’m so glad you reached out to us. I didn’t realize how big a EP&C CB&I was. You’re huge. I did a little bit of research. I just basically got it wrong.
Now, what I didn’t say – that CB&I is a great way to jump into some of the IOCs. What I said was that if you want to get in the oil and gas industry, you could go work for CB&I, especially if you have a skilled labor background. Then if you wanted to move somewhere else in the industry, you would have that background and that experience, and you could.
I’m not saying there’s anything wrong with working at CB&I. In fact, I did a little bit of research in your company culture. Y’all actually put a lot of money and effort to retain your employees, which means you treat your employees very well. If you go work for CB&I, you’ll probably want to stay there.
But I love the fact that you reached out and made me do a little research. Now I have another huge EPC company in my toolbox when I’m talking to my clients. Thanks, Aaron.
James: Yeah. This is really great stuff. I also really appreciate it, because just looking at their website, I wasn’t able to ascertain that much of a deep dive. Please, by all means, anyone who wants to jump on their soapbox, hit us in the comments. We appreciate everything.
Those are all of our questions for this month. If you want to add any questions ongoing, you can go to any of the show notes for any of the episodes that are going to be coming out over the next month. We will always put those on file and have them ready as we talked about on the last Q and A episode. By putting them in the show notes, they won’t get lost in all of my email. Mark is not the one that gets the emails. I’m the one dropping the ball with the habit.
Go to the show notes. Triberocket.com/tw53 on this one, then tw54, 55, whatever, to add your questions.
Mark LaCour, it’s time to talk about our big winner for the day for our Red Wing offshore bag. Who do you got?
Mark: It’s Anders Wilburg with Emerson Process Management.
James: Emerson Process Management. Anders, awesome, awesome bag that you got there. I finally, finally was able to get my eyes on one. I sent you the video, Mark.
Mark: Yeah. Great unboxing video. But congratulation, Anders. You won the bag. Everybody wants one. You got one. Thanks to Red Wing for doing that. Congratulations, brother.
James: Yeah. Emerson Process Management is the leader in helping businesses automate their production processing and distribution facilities in key industries. Running a process operation means constant pressure to cut costs, increase output, reduce energy use and emissions, and improve safety, all while managing increasingly complex operations. More than 7,500 industry experts around the world – they help to solve the problems their customers face today to build an advantage for tomorrow.
You just mentioned the unboxing video. Yeah. Last night, I had the opportunity to go down to the Crown Plaza, which is great, because it’s only 1.9 miles from my new place. I met up with Christian who won last. You’ve got to hear this story. It’s so hilarious. He said to his wife “This is exactly what I’m going to do. I’m going to enter the week before I go. I’m going to win it. I’m going to pick it up when I get there. I’m going to go back.”
He had it all planned out. His wife was like “Yeah, yeah, yeah.”
The funniest thing beyond that – he’s from Ecuador. His wife is Canadian. His first son was born in South Korea. His younger son was born in Brazil. His entire family – no one is the same nationality.
Mark: Yeah. How many passports are floating around that family? There must be a bunch.
James: He told me his youngest has three, and they’re always shuffling them around, because apparently, from Brazil to Indonesia, you have to pay fees. I’m not sure exactly, but it was hilarious. It was a great conversation. I think we might have to get Christian out for a .5 episode. But I’ll throw that unboxing video in the show notes so that everybody can see what the offshore bag looks like.
If you want one for yourself, there’s no purchase necessary to win. See official site for details. It’s redwingshoes.com/podcast. Again, shout-out to Red Wing and Chris over there and the whole team. Fantastic people to work with. I actually texted her last night the video. She was so fired up and replied late at night and everything. It’s just really cool.
Mark: Folks, if you want one of these bags – and they’re super, super awesome – just go redwingshoes.com/podcast, put in your information, and you’ll be entered to win.
James: Yup. All right. We’ve got three events coming up and one postponed, unfortunately, which we will get to. The Leaders in Industry Luncheon is happening at the Petroleum Club, right up the street from my place here, Mark LaCour, on a Wednesday, March 9th from 11: 30 AM to 1: 00 PM. What is going on at the Leaders in Industry Luncheon this month?
Mark: This is Leaders in Industry Luncheon. You’re going to have Mark Houser, CEO of Universal Lands Office talk about what’s going on.
Also, the day before that Leaders in Industry Luncheon, we also have the API Houston Luncheon on March 8th. On that luncheon, we have Robert Bradley, who’s the CEO of Institute for Energy and Research, talk about economically correct and politically inner correct energy policies, which ties back to some of the stuff we were talking about earlier.
Then it looks like on Thursday, March 10th, we have Decision Strategy Oilfield Breakfast, an awesome breakfast. We’re going to have the former Shell Oil president, John Hofmeister. If you’ve never heard him speak – unbelievably great speaker. He’s going to be talking about what it takes to build a more resistant oil and gas industry. I’ll be there. Come join me there.
Then I think we have one more, James. What is it?
James: Yeah. Well, let me just mention as well that the Oilfield Breakfast forum – underscore breakfast, because this happens from 6: 30 AM to 9: 00 AM at the Royal Sonesta Houston, which is out at 222 West Loop. There’s so much stuff going on. If you’re not on Mark’s list, you really need to be. I’m just going to put it that way.
We could do an entire show every week on all of the events coming up. I don’t know that it would be that interesting. We’ll just leave this part of the show alone. But just go to triberocket.com/events. That’s where you can enter your name and email address and get the email from Mark that he curates all of these different events that are happening not only in Houston. Obviously, we talk about a lot of the things that are happening in Houston, but he gets everything across the globe that’s going on.
Tell me if I’m wrong. You might have some OTC passes.
Mark: Yeah. My team scours the interwebs and finds all the oil and gas events. We’ve put them together in one place. We stick it in your inbox once a month. But we also highlight the ones that are key. The ones that you should go to. The insider only events.
I also give away free stuff. For some strange reason, James, companies out there pay attention to what you and I have to say. They often give me free passes to give to my audience. Go sign up for the list. It’s very useful. I do it as a way of giving back. The truth is years ago I was frustrated that I couldn’t find a place – one single place online – to find oil and gas events, so I built it myself.
James: That reminds me, I forgot to tell you. I met John, I can’t remember the company. He forwarded me… I forgot to forward this to you. Apparently, it was being texted all around NAPE. Someone put together a comprehensive spreadsheet of every single NAPE party, when it started, what was happening, whether or not you needed to RSVP – all of these things. I’m like “You know, I need to get to know that guy so he can link up with Mark for next year’s NAPE.” It was quite a resource.
Mark: Yeah. If anybody knows who that guy was, connect him with me. I would love to promote his stuff. It would be actually beneficial for our audience. Help us figure out who this guy is with the spreadsheet.
James: Definitely. The Rice Global E&C Round Table is Friday, March 11th from 11: 15 AM to 1: 00 PM at the Grand Hall, Rice University. Oh, man. Again, right up the street from my place here, Mark.
Tell us about what goes on at the Round Table.
Mark: I really, really wish I could go to this, because this is right in my universe. This is Patrick Leach, the CEO at Decision Strategies. He’s talking about how project managers in oil and gas has biases built in when they make decisions, especially complex situations, which is literally one of the things that we struggle with as well. The biases in the data that we collect for our clients.
I’m not going to be able to go there, but if you’re a project manager and you want to learn how to pull those biases out so you make better decisions, go to this. This is going to be really cool.
James: Give us an example of a bias that hurts when you’re making a decision.
Mark: There’s one called awareness bias. It’s the one that everybody deals with. If I told you that right now, you live in the safest time in history, you may not believe it, because you hear all around you because of technology about all the violence that’s going on. You’re aware of all this violence, which then makes you have a bias to think that we don’t live in a safe point in history when we live in the safest point in history. Does that make sense?
James: Yeah. Way back before the printing press or anything like that, you were just living in your village or in the city that you were in. Things just got spread ear to ear or whatever. Nowadays, we have mass media that is able to bombard us with all kinds of messaging that tells us it’s a dangerous time, so we believe it.
Mark: Yeah. I’ll give you another one. Information bias. The tendency to go out there and find a whole bunch of information around a problem so you can make a decision doesn’t always help you make the right decision. In fact, statistics prove that less information helps you make a better decision.
There’s another one. Information bias. I could spend all day talking about this, because it’s center to what we do is to be able to remove those biases when we do our research.
James: I’m going to throw this in here. If you want a webinar with Mark LaCour on bias, hit us in the show notes at triberocket.com/tw53, because Mark has been dying to use this webinar jam. Sort of an inside joke there.
Moving on from joking to something much, much more serious, unfortunately, the Rig Tour has been postponed. We were all looking forward to getting together out there in Bay Town on Saturday, but tell us about this, Mark.
Mark: It’s not cancelled. It’s postponed. What happened is the principle player in this that’s allowing me to have this Rig Tour for everybody had a death in his close family yesterday.
James: All prayers to him. The amazing thing –
Mark: I’m getting a little choked up because of what I’m about to say next.
James: Yeah. Go ahead.
Mark: Of the 200 people that signed up, we sent an email out saying “Hey, it’s been postponed, because there’s been a death in the family.” We’ve had over 100 responses not saying “Oh, it’s been postponed” or “What can we do?” We’ve had over 100 responses saying “How can I help? What can we do for the family?”
James: Yeah. That’s incredible.
Mark: This is the only industry on the planet that you would have that type of response, because family is so darn important. The Rig Tour has not been cancelled. It’s been postponed. We’re going to get a new date out this week. It’ll be a couple weeks out. We’ll have the tour. It’ll be loads of fun and education for everybody.
James: Yeah. That not only says a lot about this industry but also to our listeners. You are amazing people, because a lot of you have been signing up for this. The fact that you saw what happened and weren’t upset but actually came forward and really just wanted to help and put the family first – it means a lot. Please pray for the family. Like Mark said, we’ll get that date out.
Kind of heavy there, but it’s just things that happen in this life. We’re thinking right now of Aubrey McClendon, as well. Just a rough week in the oil patch.
Oh, man. All right. Let’s try to move on as best we can. We do have a LinkedIn group. Everything I’m going to say after this is going to sound silly.
Mark: Let me jump in. Folks, if you listen to the show, join our LinkedIn group. It’s so beneficial. We share so much information. We help each other. I’ve actually reached out to several people that ask questions and actually made personal introductions to people in the oil and gas industry to help them. I’ve seen people find jobs. James has done some copyright for people. It’s a great resource. It’s sort of the companion or the sister to the show.
If you haven’t joined our LinkedIn group, go out there and join it. You’ll be very glad that you did.
James: Yeah. If you’re searching for it and you search for Oil and Gas This Week, you might have trouble finding it, because it’s not called Oil and Gas This Week. It’s called The Global Oil and Gas Network, because we own that URL, and we’re launching a network eventually.
Mark: Right. You’re listening to part of the network now. Yeah.
James: Exactly. We’re working on it. We’re working on it. Everybody asking for more shows, well –
Mark: They’re coming.
James: They’re coming. They’re coming. I don’t know if I mentioned it. Triberocket.com/linkedin – that will take you straight to the group instead of searching for it. Reviews – we got a flood of them two weeks ago. Didn’t get any from the last week’s episode. Come on, Mark. Tell the people what they got to do.
Mark: If you like the show, leave us a review. It takes a minute and a half, but it does a couple of things. It allows other people to find us easier, so you’re helping your peers, because it drives our search engine rankings up. Quite honestly, we’ve got a little competition on our tail. We want to smoke them.
If you’re a competitive person, help us beat our competition and give us a review. Like I said, it takes less than two minutes.
James: Yeah. It’s really fun. People these days have been saying “Well, how do you know that you’re the number one oil and gas podcast in the world?”
I say “Easy. Just open your iTunes app and go to the podcast.” I don’t know if I mentioned this on the show where I was wondering if it was the podcast app on my phone caching my searches in the app, because every time I type in “oil”, kind of like Google, it starts to guess what you’re looking for.
I saw on at least eight different phones at NAPE that no matter who you are, once you type in “oil”, Oil and Gas This Week is the first suggestion. If that doesn’t make us number one, I don’t know what does.
A little commercial for myself at Tribe Rocket. It’s really obvious what Mark does on this show and his expertise. It’s obvious what his company does as a result. As far as Tribe Rocket Inc., if you’re ever wondering what we do, we help brands build audiences and sell them things just like the audience that you are part of, thankfully. I think probably over 70,000 downloads by now.
This show could not happen without Mark. I always say he’s the brains in the operation. It also couldn’t happen without me, because I produce the show. I put all the music in. I promote the show. I put it all across the social networks and so forth.
If you want to build your own audience for your oil and gas company so that you can sell them things, that’s what we do. That might be the most complete explanation of Tribe Rocket Inc. I’ve ever given on the show, Mark.
Mark: Yeah. Let me break it down really simply. If it wasn’t for James, you’d have me – one of the experts in oil and gas industry – talking at James, and nobody would be listening. It’d just be me and James talking. Because of James’ expertise, we have this huge audience. If you want a huge audience, some prospects, reach out to James.
James: I appreciate that. I appreciate that. All right. Yes. If you have made it this far in the show, please, by all means, share it with your family, your friends, your co-workers, everybody. You can do that across the social interwebs at triberocket.com/show.
“Did he say ‘shell’ or ‘shale’? He’s always saying ‘shale’, but it sounds like ‘shale’.”
Triberocket.com/share will take you to LinkedIn to share the show. /sharefb will take you to Facebook to share the show, and /sharetw will take you to Twitter to share the show. With that said, I think it’s time to go, Mark.
Mark: Yeah, folks. Do great work. Pay it forward. We will see you next time.
James: Go find some grease, guys.